C-NRLF 


van 


THE  LIBRARY 

OF 

THE  UNIVERSITY 
OF  CALIFORNIA 


HENRY  RAND  HATFIELD 
MEMORIAL  COLLECTION 

PRESENTED  BY 

FRIENDS  IN  THE  ACCOUNTING 
PROFESSION 


MANUAL 

AND  FULL   DESCRIPTION 


of  the 


Simple  Cost  System 

created  and  adopted  by 

The  International  Association  of  Manufacturing 
Photo -Engravers 


November,  1916,  Edition 


862-863  MONADNOCK  BLOCK,  CHICAGO 


Officers  of  the  International  Association  of  Manufacturing 
Photo  -Engravers,  1916  - 17 

E.  C.  MILLER,  President Osgood  Co.,  430  S.  Market  St.,  Chicago,  111. 

F.  W.  GAGE,  First  Vice-President Gage  Printing  Co.,  Ltd.,  Battle  Creek,   Mich. 

B.  J.  GRAY,  Second  Vice-President.  .Gray-Adams  Eng.  Co.,   1324  Wash.  Ave.,   St.  Louis,  Mo. 

J,.  C.  BBAGDON,   Secretary-Treasurer John  C.  Bragdon,  711   Penn  Ave.,   Pittsburg,  Pa. 

LOUIS  FLADER,  Commissioner 862-863  Monadnock  Block,  Chicago 

Telephone  -  Harrison  656 
Executive   Committee 

H.  A.  GATCHEL Gatchel  &  Manning,  6th  and  Chestnut  Sts.,  Philadelphia,  Pa. 

E.  W.  HOUSER Barnes-Crosby  Co.,  226  W.  Madison  St.,  Chicago,  111. 

ADOLPH  SCHUETZ Sterling  Engraving  Co.,  200  William  St.,  New  York,  N.  Y. 

W.  B.  MACKENBURG Rapid  Service  Engraving  Co.,  202  Main  St.,  Buffalo,  N.  Y. 

P.  T.  BLOGG Alpha  Engraving  Co.,  Fayette  and  Howard  Sts.,  Baltimore,  Md. 

Organizing  Committee 

HENRY  PETRAN,  Chairman Streissguth-Petran  Eng.  Co.,  5  Wells  St.,  Milwaukee,  Wis. 

A.  E.  WESSON Howard-Wesson  Co.,   Worcester,   Mass. 

THEO.  STENDEL Scientific  Engraving  Co.,  400  W.  31st.  St.,  New  York,  N.  Y. 

J.  R.  BEVAN Rembrandt  Engraving  Co.,  6th  &  Cherry  Sts.,  Philadelphia,  Pa. 

R.  D.  ARMIGER Baltimore-Maryland  Eng.  Co.,  28  S.  Charles  St.,  Baltimore,  Md. 

F.  A.  DABNEY Metropolitan  Engraving  Co.,   21  N.   12th   St.,  Richmond,  Va. 

W.  H.  HOFFMAN Dixie  Engraving  Co.,  128  Bay  St.,  W.,   Savannah,  Ga. 

M.  W.  GANSTER Alabama  Engraving  Co.,  Cor.  1st  Ave.  &  22d  St.,  Birmingham,  Ala. 

SHERMAN  SMITH .  .Pittsburg  Photo-Engraving  Co.,  723  Liberty  St.,  Pittsburg,  Pa. 

V.  W.  HURST Hurst  Engraving  Co.,  116  St.  Paul  St.,  Rochester,  N.  Y. 

H.  K.  PERRY Buffalo  Engraving  Co.,  Ellicott  &   S.  Division  St.,  Buffalo,  N.  Y. 

J.  D.  CHAMBERS.  .  .  .Art  Engraving  &  Electrotype  Co.,  1104  Prospect  Ave.,  Cleveland,  Ohio 

H.  E.  PARKINSON .' Terry  Engraving  Co.,   51  E.   State   St.,   Columbus,   Ohio 

F.  P.  BUSH Bush-Krebs  Co.,  408  S.  Main  St.,  Louisville,  Ky. 

E.  E.  STAFFORD Stafford  Engraving  Co.,  Century  Bldg.,  Indianapolis,  Ind. 

J.  H.  NEELAND  ...  Dean-Hicks  Co.,  Ellsworth  Ave.  and  Williams   St.,  Grand  Rapids,  Mich. 

GEO.  H.  HEBB Evans- Winter-Hebb  Co.,  Woodward  at  Erskine,  Detroit,  Mich. 

OSCAR  KOHN Columbian  Engraving  Co.,  115  W.  Harrison  St.,  Chicago,  111. 

A.  V.  SCHALLER Art  Engraving  Co.,  114  E.  Third  St.,  St.  Paul,  Minn. 

F.  A.  FREEMAN Freeman  Engraving  Co.,   107  5th  St.,  Minneapolis,  Minn. 

GEO.  DANZ Mound  City  Engraving  Co.,  100  N.  Third  St.,   St.  Louis,  Mo. 

L.  A.  WILLIAMS Knoxville  Engraving   Co.,   Knoxville,    Tenn. 

H.  G.  GRELLE Grelle-Egerton , Engraving  Co.,  210  Camp  St.,  New  Orleans,  La. 

ROGER  CUNNINGHAM, .  Teachenor-Bartberger  Eng.  Co.,  7th  &  Central  Sts.,  Kansas  City,  Mo. 

N.  J.  BAKER Baker  Bros.  Engraving   Co.,   Omaha,   Nebr. 

J.  J.  WALDEN Southwestern  Engraving  Co.,   Fort  Worth,   Texas 

J.  A.  DeBOUZEK.  .  .  .DeBouzek  Engraving  Co.,  27  S.  West  Temple  St.,  Salt  Lake  City,  Utah 

WM.  J.  BRANDENBURG Bryan-Brandenburg  Co.,  232  E.  Fourth  St.,  Los  Angeles,  Cal. 

ALBERT  H.  ANTZ Sierra  Art  &  Eng.  Co.,  Front  &  Commercial  Sts.,  San  Francisco,  Cal. 

F.  E.  ANDREWS Hicks-Chatten  Eng.  Co.,  607  Blake-McFall  Bldg.,  Portland,  Ore. 

A.  BERNHARD Bernhard  Engraving  Go.,  1915  First  Ave.,  Seattle,  Wash. 

Publicity  Committee 

CHAS.  STINSON Gatchel  &  Manning,  6th  &  Chestnut  Sts.,  Philadelphia,  Pa. 

R.  B.  TEACHENOR Teachenor-Bartberger  Eng.  Co.,  7th  &  Central  Sts.,  Kansas  City,  Mo. 

W.  A.  ALLEN The  Manternach  Co.,  74  Union  Place,  Hartford,  Conn. 

J.  W.  RAWSTHORNE,  JR Publicity  Engraving  Co.,  525  Third  Ave.,  Pittsburg,  Pa, 

A.  W.  MORLEY,  JR Electro-Light  Eng.  and  Elec.  Co.,  419  Pearl  St.,  New  York,  N.  Y. 

Scale  Committee 

F.  A.  RINGLER 21  Barclay  St.,  New  York,  N.  Y. 

GEO.  H.  BENEDICT,  Globe  Engraving  and  Electrotype  Co.,  711  S.  Dearborn  St.,  Chicago,  111. 

C.  J.  DOYLE Detroit  Photo-Engraving  Co.,  94  Fort  St.,  W.,  Detroit,  Mich. 

F.  W.  GAGE Gage  Printing  Co.,  Ltd.,  Battle  Creek,  Mich. 

J.   C.  BUCKBEE.  .  Bureau   of  Engraving,   Minneapolis,   Minn. 


77/E  SIMPLE  COST  SYSTEM 

And  All  There  Is  to  be  Known  about  It 


Introductory 

It  may  be  taken  for  granted  that  you  entered  the  photo-engraving 
business  with  the  idea  of  making  money.  If  you  have  the  right  concep- 
tion of  business  and  if  you  know  what  profits  are  and  mean,  you  have 
probably  met  with  a  sad  disappointment.  What  is  to  follow  is  intended 
for  men  who  take  the  photo-engraving  business  seriously,  for  those  who 
treat  it  as  a  business,  not  as  a  side-line  or  a  means  to  an  end. 

A  glance  into  the  past  discloses  the  fact  that  but  very  few  men 
ever  succeeded  in  accumulating  a  competency  out  of  the  photo-en- 
graving business.  The  men  who  were  in  it  years  ago,  "when  costs  were 
low  and  prices  high,  did  not  create  fortunes  out  of  this  business.  None 
retired  wealthy  on  money  made  in  the  photo-engraving  business  and 
most  of  them  are  today  either  making  a  living  and  nothing  more,  or 
are  engaged  in  other  and  better-paying  lines.  We  might  as  well  face 
the  truth  and  look  the  situation  squarely  in  the  eye. 

If  these  men,  working  under  much  more  favorable  conditions  than 
you  are  today,  paying  less  for  everything  they  bought  and  getting  more 
for  everything  they  sold,  could  not  accumulate  even  a  modest  sum  to 
keep  them  in  their  old  days,  how  can  you  expect  to  fare  better  if  you 
persist  in  making  the  same  mistakes  they  did? 

The  greatest  mistake  ever  made  by  engravers  is  to  as- 
sume that  it  costs  the  same  amount  per  square  inch  to  make 
plates,  regardless  of  their  size,  and  to  sell  them  upon  a  flat, 
square-inch  basis.  Wipe  out  that  error  and  you  will  wipe 
out  your  losses  and  increase  your  profits. 

Because  it  has  been  published  and  circulated  widely,  you  are 
familiar  with  the  Standard  Scale  of  Prices  approved  by  the  Indian- 
apolis Convention.  This  Scale  takes  into  consideration  the  fact  that 
small  plates  cost  more  in  proportion  than  large  plates.  That  wipes  out 
mistake  number  one.  Read  the  reading  notes  and  you  will  see  that 
certain  portions  of  the  work  are  to  be  sold  on  the  basis  of  time  work. 
Now  remember  that  everything  about  this  Standard  Scale  is  based  upon 
the  COST  OF  PRODUCTION,  not  in  one  shop  or  one  city,  but 


Manual  and  Full  Description 


in  many  shops  in  a  number  of  cities,  and  that  the  facts  were  gathered 
over  a  period  of  years. 

In  order  to  sell  your  products  intelligently  and  at  a  profit,  you  must 
fynow  the  cost  of  production.  This,  the  Simple  Cost  System  will  give 
you.  We  cannot  combine  to  raise  prices  and  eliminate  competition. 
As  a  matter  of  fact  there  is  no  necessity  for  such  an  act  and  certainly 
no  desire  for  it.  We  cannot  compel  men  to  do  what  we  ask  them  to  do. 
On  the  other  hand,  we  are  not  expected  to  conduct  our  businesses  at  a 
loss  nor  do  -we  have  to  give  away  a  part  of  our  product.  We  have  a 
perfect  and  well-defined  right  to  educate  the  photo-engravers  in  every 
phase  of  the  business,  and  no  one  will  object  to  our  endeavors  to  im- 
prove the  business  and  the  men  in  it. 

It  will  not  do  for  some  of  us  to  know  these  things  and  to  alone  profit 
by  that  knowledge.  We  cannot  hope  to  enrich  one  part  of  our  craft 
and  at  the  same  time  impoverish  the  remainder.  We  have  discovered 
the  fundamental  wrongs  of  this  business  and  we  have  found  the  reme- 
dies therefor. 

The  Simple  Cost  System  will  teach  you  more  about  your  business 
than  you  ever  knew  before  and  the  Standard  Scale  will  enable  you  to 
make  use  of  what  you  have  learned.  One  is  of  no  value  without  the 
other.  Unless  you  know  your  cost  of  production,  you  cannot  properly 
use  the  Standard  Scale.  LEARN  THE  ONE  AND  USE  THE 
OTHER. 

Mistakes  of  the  Past — and  What  They  Have  Cost 

Man  is  not  inclined  to  view  with  favor  the  thing  he  gets  for  nothing. 
To  disabuse  anyone  of  the  idea  that  the  result  of  the  Cost  Committee's 
work  is  a  free  gift  to  photo-engravers,  let  it  be  known  that  we  have  paid 
a  fabulous  price  for  it. 

The  International  Association  has  been  in  existence  nineteen  years. 
Let  us  say  that  the  average  annual  dues  of  the  Association  for  the  first 
eighteen  years  of  its  existence  were  $1 ,000  per  year, — a  total  of  $18,- 
000.  In  the  last  two  years  we  have  collected  and  spent,  in  behalf  of  all 
photo-engravers,  the  sum  of  $60,000.  The  individual  expenses  of 
every  man  attending  the  various  conventions  can  be  set  at  $1 00,  a  total 
expense,  for  this  item  alone,  of  $140,000.  We  can  safely  say  that  our 
organizational  efforts  during  the  past  seventeen  years  have  cost  the  sum 
of  $200,000, 


of  the  Simple  Cost  System 


At  the  Boston  Convention  a  Cost  Committee  was  appointed  to 
gather  statistics  of  cost  and  to  formulate,  if  possible,  a  Basic  Selling 
Plan.  This  the  Cost  Committee  has  done.  In  addition  thereto  and 
based  upon  the  evidence  obtained  from  those  operating  cost-finding 
systems,  the  Cost  Committee  has  formulated  a  Simple  Cost  System 
and  now,  after  nineteen  years  of  effort,  we  have  TWO  CONCRETE 
PLANS  FOR  IMPROVING  THE  BUSINESS— ,4  Standard 
Selling  Schedule  and  a  Simple  Cost  System. 

As  these  two  propositions  are  the  result  of  nineteen  years 
of  effort  and  represent  a  cash  expenditure  of  over  $200,- 
000  out  of  the  pockets  of  photo-engravers,  it  can  hardly 
be  said  that  you  are  getting  something  for  nothing.  To 
get  an  idea  of  the  enormous  cost  at  which  our  efforts 
have  been  secured,  let  me  call  your  attention  to  the  fol- 
lowing staggering  figures.  Estimating  the  annual  sales  in 
the  photo-engraving  industry  at  only  $10,000,000  per  year 
for  the  last  fifteen  years,  a  total  of  $150,000,000  is  ob- 
tained. The  lack  of  a  Standard  Selling  Schedule  and  ig- 
norance of  costs  has  cost  the  photo-engravers  of  this  coun- 
try a  loss  of  at  least  ten  per  cent  in  revenues  and  one 
hundred  per  cent  in  profits  during  all  the  time  they  have 
been  in  business.  Considering  only  the  period  of  fifteen 
years,  the  loss  sustained  by  you,  all  of  which  could  have 
been  saved,  amounts  to  ten  per  cent  of  that  immense  sum, 
or  $15,000,000  a  loss  of  $1,000,000  per  year  divided 
among  500  firms. 

Raise  your  selling  prices  ten  per  cent  and  you  double 
your  profits. 

Is  it  worth  while? 


Manual  and  Full  Description 


The  Simple  Cost  System—  What  It  Is 

Cost  is  the  exact  sum  of  all  expenditures  incurred  in  connection  with 
an  item,  including  expenses  of  manufacturing,  marketing  or  other 
handling  up  to  the  point  at  which  cost  is  determined. — Denham. 

The  Simple  Cost  System  is  a  method  by  which  you  can  ascertain 
correctly  the  cost  of  any  article  you  manufacture  in  your  photo-en- 
graving department.  Broadly  speaking,  only  two  elements  enter  into 
the  production  of  photo-engraved  plates — materials  and  labor.  The 
Simple  Cost  System  tells  you  the  cost  of  materials  and  it  tells  you  the 
exact  hour  cost  of  labor.  If  you  have  your  workmen  record  the  amount 
of  time  they  consume  in  making  a  plate  and  if  you  know  its  size,  you 
can  readily  and  without  mental  effort  on  your  part  figure  up  the  value 
of  the  material  and  the  value  of  the  labor  and  by  adding  the  two  you 
arrive  at  COST. 

No  business  can  be  safe  nor  can  any  manufacturer  be  considered  a 
business  man  unless  the  cost  of  production  is  known.  The  Simple  Cost 
System,  based  upon  the  fundamental  truth  that  everything  you  buy 
and  sell  is  expressed  in  MATERIALS  and  LABOR,  finds  the  true 
cost  of  each.  This  is  a  simple  act  when  dealing  with  material,  because 
those  items  practically  separate  themselves  from  all  other  expenses, 
consequently  the  cost  of  materials  can  be  easily  obtained.  The  TRUE 
COST  OF  LABOR  is  not  so  easily  determined.  The  wages  paid 
out  to  labor  are  self-evident,  but  inasmuch  as  LABOR  must  pay  for 
itself  and  carry  all  other  expenses,  it  becomes  necessary  to  establish 
the  exact  ratio  of  the  labor  expense  to  all  other  expenses  and  then  add 
a  sum  to  the  wages  paid  the  workmen  large  enough  to  cover  all  other 
expenses  and  include  NON-PRODUCTIVE  TIME. 

That  is  exactly  what  the  Simple  Cost  System  is  and  does. 

How  It  Is   Created 

If  cost  is  the  exact  sum  of  all  expenditures  incurred  in  the  making 
and  handling  of  an  item,  then  we  must  go  to  the  expense  account 
(Cash  Book)  to  get  our  figures.  This  we  have  done. 

Materials  have  been  separated  from  all  other  expenses  of  the  busi- 
ness and  we  found  that  materials  cost  two  cents  per  square  inch  for  zinc 
etchings  and  three  cents  per  square  inch  for  copper  halftones  (1913). 


of  the  Simple  Cost  System  ,  7 

The  cost  of  materials  per  square  inch  in  this  case  means  THE 
SOLD  INCH.  For  every  SOLD  inch  of  materials,  one-third  of  an 
inch  is  waste.  In  other  words,  33  1  /3  per  cent  of  all  materials  is  waste; 
only  66  2/3  per  cent  of  your  materials  is  sold  in  the  shape  of  photo- 
engraved  plates.  To  prove  the  cost  of  materials,  take  their  total  cost 
for  one  year,  separate  the  items  into  two  classes — zinc  materials  and 
halftone  materials.  Keep  track  of  the  number  of  square  inches  of  zinc 
etchings  and  halftones  you  sell  for  one  year.  Divide  the  total  cost  of 
the  zinc  materials  for  the  year  by  the  number  of  square  inches  of  zinc 
etchings  sold  during  that  period  and  the  answer  will  be  your  cost  of 
materials  for  zinc  etchings  on  the  SOLD  INCH  BASIS.  Do  the 
same  with  your  halftone  figures  and  you  will  get  the  cost  of  materials 
for  halftones  on  the  SOLD  INCH  BASIS.  If  you  allow  yourself 
a  fair  margin  on  the  materials  to  cover  cost  of  handling  and  interest 
you  will  find  our  figures  of  two  and  three  cents  per  SOLD  INCH  as 
the  correct  prices  for  the  materials  entering  into  zinc  etchings  and  half- 
tones respectively. 

Having  disposed  of  materials,  we  take  all  other  expenses  connected 
with  the  photo-engraving  department  and  divide  them  into  four  classi- 
fications, as  follows : 

Shop  Pay-Roll  (DIRECT  LABOR)  .—Wages  paid  to  men 
actually  employed  in  the  production  of  photo-engraved  plates. 

Superintendence  (INDIRECT  LABOR).— Wages  paid  to  su- 
perintendent, foremen,  floor  boys,  etc. 

Shop  Expense. — Rent  for  shop,  power,  light,  heat,  water,  janitor 
service,  repairs,  etc.,  etc. 

Office  Expense. — All  so-called  Overhead  expenses,  such  as  exec- 
utive salaries,  salesmen's  salaries,  advertising,  delivery,  office  rent  and 
light,  interest  on  investment,  depreciation,  etc. 

The  following  illustration  shows  exactly  how  the  items  of  expense 
were  taken  from  the  Cash  Book  and  separated. 

In  creating  the  Simple  Cost  System  the  expenses  of  one  plant  for  the 
period  of  two  years  were  first  considered.  Then  to  verify  the  figures, 
we  took  the  expenses  of  five  different  firms  for  the  period  of  six  months, 
separated  the  expenses  into  the  various  classifications  and  compared 
them  with  our  first  figures.  You  can  see  the  result.  They  are  prac- 
tically identical. 


Manual  and  Full  Description 


Division  of  Expenses  ( Material  Not  Included) 

5  Plants  1   Plant 

6  Months  2  Years  Average 

Shop   Pay-Roll    $50,580  $51,810  51% 

Superintendence      5,620  6,080  6% 

Shop  Expense    13,200  T2.890  13% 

Office   Expense    30,520  28,520  30% 

$99,920  $99,300  100% 

At  your  leisure,  go  to  your  own  Cash  Book,  separate  your  ex- 
penses in  exactly  the  same  manner  as  shown  here  and  see  how  your 
figures  compare  with  ours.  Put  each  classification  on  a  percentage 
basis  and  then  see  what  percentage  of  your  total  expense  each  class 
represents.  That  will  tell  the  story.  You  may  not  divide  and  classify 
your  expenses  exactly  as  we  have  done,  but  you  certainly  cannot  go 
wrong  on  the  Shop  Pay-Roll.  IF  YOUR  SHOP  PAY-ROLL 
REPRESENTS  ABOUT  FIFTY  PER  CENT  OF  YOUR 
TOTAL  EXPENSES,  exclusive  of  materials,  THEN  OUR 
HOUR  RATE  AND  THE  LABOR  COST  CALCULATOR 
FIT  YOUR  CONDITIONS  EXACTLY. 

Don't  lose  track  of  the  fact  that  the  Shop  Pay-Roll  (Direct  Labor 
expense)  is  almost  exactly  one-half,  or  fifty  per  cent  of  the  total  ex- 
pense, EXCLUSIVE  OF  MATERIALS.  It  follows  naturally 
that  if  DIRECT  LABOR  AMOUNTS  TO  ONE-HALF  OF 
YOUR  TOTAL  EXPENSES,  TO  GET  THE  LABOR  COST 
PER  HOUR  YOU  HAVE  TO  MULTIPLY  BY  TWO  THE 
WAGES  PAID  THE  WORKMAN.  In  other  words,  if  you  pay 
your  workman  fifty  cents  per  hour  and  if  that  amount  represents  jusj 
one-half  of  what  it  costs  you  for  everything  outside  of  labor,  then  if 
labor  is  to  be  made  the  unit  of  reckoning,  you  must  double  it  to  short? 
its  true  cost  to  you. 

The  foregoing  is  a  very  simple  problem  in  arithmetic  and  one  any 
ten-year-old  boy  can  solve.  But  there  is  another  item  to  be  taken 
into  consideration.  Someone  has  to  pay  for  NON-PRODUCTIVE 
TIME. 

Non-productive  time  is  time  paid  for  by  you,  but  which  cannot  be 
sold  directly  to  the  customer  in  the  shape  of  finished  plates.  It  repre- 
sents time  lost  for  various  reasons.  Your  workmen  may  be  idle  part 
of  the  day  because  business  is  slack.  Your  power  may  be  shut  down. 
Your  equipment  may  be  out  of  order.  Your  water  supply  may  fail  you 
partly  or  at  times  altogether.  Your  men  may  be  idle  for  most  any 


' 


of  the  Simple  Cost  System 


CASH 

OL            D          D     11 

CR. 

<R5Sf»  63 

Direct          Indirect 
Materials       Labor            Labor 

$498  17    $58  46 

Shop 
Expense 

Office 
Expense 

Sold 
Items 

bhop  ray-Koll  

21.12 

$21.12 

Camera  Repairs.  ......... 
Oil 

84.00 
1  80 

$1  80*     '. 

84.00 





3  60 

3  60          

2  50 

$2.50 

Office  Pay-Roll  
Advertising  

150.00 
60.00 
2  50 

2.50 

$150.00 
60.00 

1  .50 

1.50 

2.00 

5.00 

2.00 

5.00 

c-iv_r 

28  50 

28.50     

15  85 

15  85     

36  45 

36.45     

Copper  
-7-  _ 

28  50 

28  .  50          

2.19 

2.19 

SKnn  PAV   Rnll 

556  63 

498.17      58.46 

Glass 

16.00 

16.00 

Rent,  Light  and  Power  

357.56 
4  50 

357.56 
4.50 





Office  Rent  and  Light  
Petty  Cash,  Office  

Ppttv  C'ash     Sb.nn 

80.40 
12.25 
8  40 



8  40 

80.40 
.  12.25 



Freioht 

1  50 

1  .  50     

30  00 

30  00 

Local  Club  Dues         

5.00 

5.00 

24  80 

24.80          

Office  Pay-Roll  
Plumber                      

150.00 
12.20 

12  20 

150.00 



Ink 

3  50 

3.50     

Paint    

1.50 

1.50 

Illustrating  How   You  May  Separate   Your  Expenses 

The  left-hand  column  represents  a  page  from  your  Cash  Book.  The  columns  to  the  right  show 
the  different  classifications  and  how  to  transfer  your  individual  expenditures  from  the  Cash  Book  to  a 
sheet  ruled  so  you  can  place  each  item  of  expense  under  its  proper  heading. 

Figure  up  your  expenses  for  a  year,  then  see  what  percentage  of  the  whole  is  represented  by  each 
classification* 

Add  up  your  "  Material  "  expenses  and  your  "  Sold  Items  "  and  subtract  both  from  your  Total 
Expense.  Materials  have  been  otherwise  provided  for,  and  Sold  Items  should  not  be  charged 
against  any  of  the  four  classifications  we  are  using  to  arrive  at  cost. 

Our  figures  show  that  Direct  Labor  is  5 1  per  cent  of  the  Total  Expense  (Materials  Excluded). 
Indirect  Labor  is     6 
Shop  Expense  is   1 3 
Office  Exp'nse  is  30 

100  per  cent 
WHAT    DO     YOUR    FIGURES    SHOW? 


1  0  Manual  and  Full  Description 

reason  at  all,  but  the  fact  remains  that  you  pay  for  their  full  time, 
although  it  is  not  all  used  in  the  production  of  plates.  Your  photogra- 
pher has  to  polish  screens  and  lenses.  He  has  to  mix  chemicals  and 
boil  silver  baths.  Your  etchers  have  to  stop  work  in  order  to  attend 
to  their  equipment.  The  router  and  blocker  has  to  repair  belts,  clean 
motors,  sharpen  cutting  tools ;  in  fact,  every  one  of  your  workmen  puts 
in  a  part  of  his  time  at  some  of  these  things  AND  YOU  PAY  HIM 
FOR  HIS  TIME. 

IF  YOU  SOLD  ALL  YOUR  PRODUCTS  ON  THE 
BASIS  OF  THE  ACTUAL  TIME  CONSUMED  IN  THEIR 
MAKING,  YOU  WOULD  LOSE  MONEY,  UNLESS  YOU 
MADE  YOUR  HOUR  RATE  HIGH  ENOUGH  TO 
COVER  NON-PRODUCTIVE  TIME. 

The  Simple  Cost  System  is  based  upon  the  experience  and  records 
of  a  number  of  shops  throughout  the  country.  A  careful  comparison 
of  these  records  has  disclosed  the  fact  that  conditions  are  very  much 
alike  in  all  photo-engraving  establishments  in  the  long  run.  Varia- 
tions may  and  will  occur,  but  they  happen  only  when  the  records 
cover  a  short  period  of  time.  When  they  are  kept  for  a  year  or  more, 
they  are  astonishing  in  their  similarity.  For  instance:  We  figure  the 
non-productive  time  as  being  eight  hours  per  week  on  the  part  of  every 
workman.  When  you  are  extremely  busy,  you  will  perhaps  have 
less  than  eight  hours  of  non-productive  time  per  week.  When  busi- 
ness is  dull,  you  are  sure  to  have  more  than  eight  hours  of  non-produc- 
tive time  per  week.  EIGHT  HOURS  NON-PRODUCTIVE 
TIME  OUT  OF  FORTY-EIGHT  HOURS  PER  WEEK  IS 
A  FAIR  AVERAGE  CONDITION  and  we  have  accepted  it  as 
such.  It  goes  without  saying  that  you  cannot  change  your  prices  with 
the  fluctuations  of  your  sales,  nor  can  you  change  your  prices  after 
you  have  given  your  estimate  on  a  job.  Accept  what  we  give  you  until 
you  have  had  ample  opportunity  to  learn  the  exact  conditions  in  your 
own  plant.  It  will  take  you  at  least  a  year  to  determine  them  for  your- 
self. 

As  before  stated,  we  have  come  to  the  conclusion  that  the  average 
amount  of  non-productive  time  amounts  to  eight  hours  per  week  on  the 
part  of  every  workman. 

Your  total  expenses,  exclusive  of  materials,  are  divided  into  four 
classifications:  Shop  Pay-Roil  (Direct  Labor),  Superintendence  (In- 
direct Labor) ,  Shop  Expense  and  Office  Expense.  Out  of  these  four 


of  the  Simple  Cost  System 


sources  of  expense,  there  is  only  one  that  actually  produces  the  goods 
you  sell,  namely,  DIRECT  LABOR. 

Therefore,  YOU  MUST  SELL  DIRECT  LABOR  AT  A 
PRICE  THAT  WILL  PAY  FOR  ITSELF,  COVER  EVERY 
OTHER  ITEM  OF  EXPENSE  (materials  excluded)  AND 
PRODUCE  A  PROFIT. 


EXPENS 


EXECUTIVE  ANoOFFICE  SALARIES, 
ADVERTISING, TAXES,  INSURANCE 
DEPRECIATION,  ETC. 


SHOP  EXPENSE 


RENT,  POWER,  LIGHT,  ETC 


INDIRECT  LABOR 

SUPERINTENDENCE.  ETC 


DIRECT  LABOR  EXPENSE 


m 


The  Dollar  of  Expense. 
The  shaded  portion  —  Direct  Labor — must  carry  All  Other  Expenses  and  Produce  the  Profits. 

If  you  will  glance  at  the  illustration,  "The  Dollar  of  Expense,'* 
you  will  get  the  idea  very  quickly.  Fifty-one  cents  out  of  every  dollar 
of  expense  go  to  your  workmen.  To  double  the  workman's  wages 
would  give  you  the  hour  cost  EXCLUSIVE  OF  THE  NON- 
PRODUCTIVE TIME.  If  you  do  not  take  the  non-productive 
time  into  consideration,  you  cheat  yourself.  You  buy  forty-eight  hours 
per  week,  you  sell  FORTY  HOURS  PER  WEEK.  TAKE 
THE  WAGES  OF  ANY  ONE  OF  YOUR  WORKMEN 
PAID  HIM  FOR  FORTY-EIGHT  HOURS'  WORK,  DI- 


12 


Manual  and  Full  Description 


VIDE  THAT  SUM  BY  FORTY,  MULTIPLY  THE  RE- 
SULT BY  TWO  AND  YOU  HAVE  'HIS  HOUR  COST. 

vTo  illustrate:  You  pay  a  workman  twenty-four  dollars  per  week 
for  forty-eight  hours'  work.  His  rate,  then,  is  fifty  cents  per  hour.  But 
you  sell  only  forty  hours  of  his  time  per  week ;  therefore  his  rate  on  the 
sold  hour  basis  is  sixty  cents  per  hour.  Since  the  workmen's  wages  are 
just  one-half  of  your  total  expense,  now  that  we  have  taken  the  non- 
productive time  into  consideration,  we  simply  DOUBLE  THE 
SOLD  HOUR  COST  AND  WE  GET  THE  TRUE  HOUR 
COST.  That  is  why  the  I.  A.  M.  P.  E.  Cost  Calculator  is  based  on 
DOUBLE  THE  WAGES  PAID  FOR  FORTY  SOLD 
HOURS  PER  WEEK. 


I.  A.  M.  P.   E.  Labor  Cost  Calculator. 

This  Calculator  saves  figuring.     It  gives  you  the  hour  cost  of  any  workman  in  your  employ  on  the  basis  of  Double  the 
Wages  Paid  for  Forty  Sold  Hours  per  Week. 


of  the  Simple  Cost  System  .  1  3 

To  find  the  cost  of  a  plate,  you  get  a  record  of  each  workman's 
time  consumed  in  its  making.  You  locate  each  workman's  weekly 
pay  on  the  left  side  of  the  Cost  Calculator  and  you  follow  the  line  to 
the  right  until  you  come  to  the  amount  of  time  consumed  irj  minutes  or 
hours.  The  figures  appearing  at  that  point  give  you  the  cost  of  his 
time.  In  that  manner  you  get  the  cost  of  every  man's  time  appearing 
on  the  cost  ticket.  Add  up  all  items  of  labor  cost  and  add  to  that  sum 
the  cost  of  materials  at  two  cents  an  inch  for  zinc  etchings  or  three  cents 
an  inch  for  halftones.  The  result  is  the  complete  cost  of  that  particular 
piece  of  work. 

The  foregoing  description  of  the  Simple  Cost  System  covers  the 
subject  fully.  Read  it  over  carefully  and  you  will  know  all  there  is 
to  be  known  about  it.  It  has  been  our  aim  not  only  to  present  you  with 
the  Simple  Cost  System,  but  to  explain  every  detail  of  it  so,  that  you 
can  verify  it  step  by  step.  Its  use  in  the  beginning  will  produce  mysti- 
fying results  and  at  times  you  will  doubt  your  own  figures.  Stick  to 
it  and  you  will  soon  see  why  things  are  thus  and  so.  No  doubt  you 
have  your  own  ideas  on  the  subject,  and  perhaps  you  have  long  sus- 
pected some  of  the  things  the  Simple  Cost  System  will  show  you. 
The  difference  is,  if  you  use  the  Simple  Cost  System  YOU  WILL 
KNOW — you  won't  have  to  guess  or  surmise.  There  are  none  so 
badly  fooled  as  those  who  fool  themselves,  and  engravers  have  fooled 
themselves  long  enough. 

Perhaps  you  do  not  believe  all  we  have  told  you  about  this  Cost 
System.  Very  likely  you  are  of  the  opinion  that  such  conditions  as 
we  assert  to  be  facts  do  not  exist  in  your  shop.  Very  well.  We  have 
told  you  exactly  how  we  arrive  at  our  conclusions  and  you  can  check 
us  up  and  check  the  Simple  Cost  System  up  in  any  way  you  like.  We'll 
change  our  figures  as  soon  as  you  prove  conclusively  that  they  are 
wrong.  That's  fair,  is  it  not? 

How  to  Install  the  Simple  Cost  System 

Before  you  send  a  cost  ticket  into  the  shop,  explain  to  your  work- 
men that  in  order  to  conduct  your  business  properly  and  with  due  re- 
gards to  all  concerned,  it  is  necessary  for  you  to  know  the  cost  of  pro- 
duction of  every  article  manufactured.  Have  them  understand  that 
you  want  a  correct  record  of  the  time  consumed  in  the  manufacture  of 
the  work,  so  that  you  can  arrive  at  a  fair  selling  price,  one  that  will 
permit  you  to  pay  the  workmen  good  wages  and  net  a  fair  profit  for 


14 


Manual  and  Full  Description 


yourself.  When  your  workmen  understand  your  motives  they  will  co- 
operate with  you  and  take  as  much  interest  in  cost  finding  as  you  do, 
because  it  means  just  as  much  to  them  as  it  means  to  you.  Do  not  for- 
get that  both  you  and  your  workmen  will  be  surprised  at  the  facts  pro- 
duced by  the  cost  tickets.  Take  them  as  they  come  to  you  and  use 
them  properly.  The  same  facts  always  existed,  only  you  did  not  know 
it  and  your  workmen  did  not  even  suspect  it. 

FORM  "A" 


NO-         /£7. 

Mrs. 

Min. 

$ 

1 

Photographer 

Lr 

M 

Stripper 

f 

,/t 

Printer 

f 

,10 

Etcher 

tf 

,32 

Finisher 

if 

J¥ 

Router 

£_ 

'II 

Blocker 

J* 

10 

Proofer 

/f 

M 

//""Sq.  in.  Copper  @  3<f 

,*f 

Sq.  in.  Zinc  ©  2{ 

TOTAL 

L 

Vf 

REMEMBER  THIS  POINT:  THE  SIMPLE  COST 
SYSTEM  IS  NOT  A  FAULT-FINDING  SYSTEM.  IT  IS 
INTENDED  TO  SHOW  YOU  EXACTLY  WHAT  YOUR 
COSTS  ARE. 

Referring  to  the  blank  forms  furnished  with  the  Simple  Cost 
System  and  illustrated  herewith,  and  the  I.  A.  M.  P.  E.  Labor 
Cost  Calculator,  let  us  assume  that  you  operate  a  very  small 
photo-engraving  plant,  employing,  say,  four  or  five  men.  Perhaps 
you  do  not  use  shop  tickets  or  order  tickets  of  any  kind  and  you  simply 
mark  sizes  and  other  instructions  on  the  back  of  copies  or  on  a  slip  of 
paper.  In  that  case  fasten  one  of  the  little  cost  tickets  marked  "Form 
A"  on  the  back  of  the  copy  or  on  the  envelope  in  which  the  copy  is 


of  the  Simple  Cost  System 


15 


sent  to  the  shop.  If  there  are  more  than  one  copy  in  the  order,  keep 
the  cost  record  for  the  entire  order  on  one  ticket  or  send  in  a  ticket  for 
each  plate,  just  as  you  see  fit. 

Now  have  each  one  of  your  workmen  record  in  its  proper  place  on 
the  cost  ticket  the  exact  amount  of  time  consumed  by  him  in  handling 
each  job.  When  the  work  is  completed,  the  copy,  plate,  proof  and 
cost  ticket  will  all  reach  the  office  at  the  same  time. 

The  Labor  Cost  Calculator  will  give  you  the  hour  cost  of  each 
workman.  Add  up  the  labor  costs  thus  obtained,  then  add  to  that 


FORM  "B." 


From_ 


Jo_ 


.191  _ 


Halftone* 


Zinc  Etchings 


Q? 
--  L& 


£ 


fo 


.32. 


O 


17) 


7$ 


/a 


vr 


17 


TO 


Zf 


Ltr 


if 


{,00 


17 


op 


2. 


72 


IL 


70 


/o 


sum  two  cents  per  square  inch  for  zinc  etchings  or  three  cents  per  square 
inch  for  halftones  for  the  size  of  the  plate,  and  you  have  the  TOTAL 
COST  OF  THE  JOB. 

If  you  are  a  bit  ambitious  and  want  to  know  just  what  you  are  doing 
from  day  to  day,  then  use  the  blank  marked  "Form  B."  Let  your 
bill  clerk  or  bookkeeper  have  several  of  these  blanks  before  him  and 
as  soon  as  a  job  is  completed,  let  him  put  down  the  results  of  that  job 
on  this  blank.  Use  one  blank  for  zinc  etchings,  another  for  halftones 
and  another  for  color  work,  etc.  In  this  way  you  can  separate  the 
different  classes  of  work,  and  you  will  have  an  ever-ready  and  up-to- 
the-minute  schedule  of  your  output,  showing  the  full  particulars  of 
each  order,  together  with  the  item  of  profit  or  loss.  You  can  keep 
these  records  by  the  day,  the  week  or  the  month.  Once  you  begin  to 
keep  them,  you  will  be  closer  to  the  pulse  of  your  business  than  you 


16 


Manual  and  Full  Description 


ever  were  before.  Just  imagine  being  able  to  tell  in  a  minute's  time 
exactly  how  many  of  each  kind  of  plates  you  made  during  a  day,  week 
or  month  and  how  much  you  gained  or  lost  by  the  operation  and  ex- 
actly where  and  when  such  gain  or  loss  was  incurred. 


FORM  "C." 


COST  RECORD 

Mrs. 

Min. 

$ 

1 

65  Line 

Like  Copy 

White  Letter 

Inserts 

Photographs 

85  Line 

Oval 

Embossing 

Color  Plates 

Retouching 

100  Line 

Outline       l/~ 

Metal  Base 

X             Proofs 

Sketch 

120  Line 

Vignette    ^- 

Mortise 

Submit  for  0.  K. 

Drawing 

133  Line 

No  Line 

Anchor 

150  Line        //" 

Square 

Trim  Flush 

Regular  on  Wood     fS* 

Photographer 

3f 

ft 

Stripper 

j~ 

/0 

DRAWING 

/      HALFTONE 

ETCHING 

ENGRAVING 

Printer 

j~ 

/Q 

Size    4i3/*/)((f 

SUbieCt    /f^^x^/^d^   ff/%te^<^<<-< 

Etcher 

/ 

fr~ 

L 

?? 

0 

Finisher 

i 

flP 

Salesman,  Instructions           ^J/j/^^        J/77^n    a  Csrtstjfct  s  J^"  —   /£)^  ^7~ 

Router 

/r 

30 

T^r?  A^iziS^yL 

Blocker 

j- 

/0 

f  '  L. 

Proofer 

zp 

•¥Z 

30      Sq.  In.  Copper  @  3$ 

JD 

Sq,ln.  Zinc@2t 

Other  Work 

ELECTROS                                                          CreditA^X 

7 

7? 

Req.  No,      ^2/^  ji> 

Invoice  No.       /JYSLC, 

Express  or  Carfare 

./$ 

Order       rr 
No.          ' 

>/*\U 

Wante'd      ^///—        f"     A.  M.   Delivered 
P.M. 

Other  Charges 

Name              A 

t*.#  &2U 

^^^.                                ShipVia    ^^ 

Price                                 ^ 

2 

6V 

Address     *     ^ 

7£  /h  <, 

Ci^u^ur^  *fa.         &.<&'< 

Profit  or  Loss                fo^Ld 

37 

'                                                     f 

Now  let  us  assume  that  you  conduct  a  larger  shop  and  that  you 
have  a  complete  office  equipment  and  plenty  of  office  help.  In  that  case 
you  will  want  a  Shop  or  Order  ticket  as  well  as  a  Cost  Record.  For 
you  we  advise  the  use  of  blank  marked  "Form  C."  In  fact,  every  shop, 
no  matter  how  large  or  small,  should  have  an  Order  ticket  to  carry  the 
instructions  to  the  workmen.  We  offer  you  such  a  blank  and  in  this 
case  we  have  added  a  Cost  Record  to  the  Order  ticket.  This  ticket 
is  handled  in  the  following  manner.  It  is  printed  in  duplicate  form, 
white  and  pink  sheets  alternating.  Your  salesman  or  order  clerk  fills 
in  the  blank  spaces  necessary  to  carry  the  instructions.  By  placing  a 
sheet  of  carbon  paper  between  the  two  sheets  he  gets  an  exact  duplicate 
copy  of  the  sheet  he  writes.  One  sheet  is  sent  into  the  shop,  the  other 
is  kept  on  file  in  the  office.  On  the  left-hand  side  of  the  ticket  will  be 
found  the  cost  record.  The  workmen  record  their  time  as  they  go 


of  the  Simple  Cost  System  1  7 

along  and  when  the  ticket  finally  reaches  the  office  and  is  figured  up, 
you  have  on  one  sheet  of  paper  a  full  description  of  the  job,  every  de- 
tail pertaining  to  it  and  a  record  of  its  cost  of  production.  A  flat  proof 
of  the  job  may  then  be  attached  to  the  ticket  and  it  can  be  filed  together 
with  its  duplicate  as  a  permanent  record. 

To  capitulate: 

Blank  marked  "Form  A"  is  the  simplest  form  of  cost  ticket  known. 
It  is  intended  to  record  the  cost  of  production  only  and  answers  no 
other  purpose. 

Blank  marked  "Form  B"  is  used  to  tabulate  the  results  of  your 
cost  records  and  can  be  used  in  conjunction  with  any  kind  of  cost  or 
order  ticket.  It  takes  no  time  to  keep  these  records  and  if  you  do,  you 
will  know  at  any  and  all  times  just  what  you  are  doing  and  at  what  cost. 

Blank  marked  "Form  C"  is  a  complete  Order  and  Cost  ticket.  It 
will  fit  practically  every  engraving  establishment  and  answer  the  pur- 
pose better  than  perhaps  the  form  you  are  using  for  merely  your  Order 
Ticket. 

The  general  adoption  of  these  forms  will  result  -in  UNIFORM- 
ITY, something  greatly  to  be  desired.  Workmen  will  quickly  be- 
come familiar  with  the  blanks  and  many  mistakes  due  to  misunderstand- 
ing will  be  eliminated.  It  will  be  a  great  step  toward  STAND- 
ARDIZATION, perhaps  the  greatest  the  photo-engravers  have  ever 
undertaken. 

You  now  have  in  your  possession  everything  necessary  to  install  and 
use  the  Simple  Cost  System.  Additional  blanks  can  be  secured  from 
the  Commissioner  at  COST  to  the  I.  A.  M.  P.  E.  Electros  of  any 
of  the  forms  can  be  secured  likewise. 

In  placing  the  Simple  Cost  System  before  you  ready  for  use,  FREE 
OF  CHARGE,  the  Officers  of  the  International  Association  of 
Manufacturing  Photo-Engravers  feel  that  they  are  rendering  you  a 
signal  service.  They  are  actuated  by  the  highest  motives  and  a  sin- 
cere desire  to  aid  you  as  a  brother  photo-engraver.  There  is  nothing 
altruistic  about  this.  It  is  just  plain  common  sense  and  in  keeping 
with  the  spirit  of  the  times.  The  use  of  the  Simple  Cost  System  and 
the  Standard  Scale  will  enable  you  to  do  your  share  in  the  uplift  of 
the  photo-engraving  business.  The  use  of  the  Simple  Cost  System  and 
the  Standard  Scale  will  enable  you  to  reduce  your  losses  and  increase 
your  profits,  will  take  care  of  you  and  yours  and  make  you  proud  of 
the  fact  that  you  are  in  the  photo-engraving  business. 


18  Manual  and  Full  Description 


Agreement  between  the  International  Association  of  Manufac- 
turing Photo-Engravers  and  the  International  Photo- 
*  Engravers'  Union  of  North  America 

WITNESSETH:  First.  It  is  agreed  by  the  International  Photo-Engravers' 
Union  of  North  America,  that  members  of  the  International  Photo-Engravers' 
Union  will  co-operate  with  the  International  Association  of  Manufacturing  Photo- 
Engravers  of  North  America  in  the  installation  and  operation  of  the  "Simple 
Cost  System"  adopted  by  the  International  Association  of  Manufacturing  Photo- 
Engravers  at  its  convention  held  in  Indianapolis,  Ind.,  June  23,  24  and  25, 
1913,  in  all  photo-engraving  establishments  wherein  members  of  the  I.  P.  E.  U. 
are  employed  and  working  under  an  agreement  with  the  local  union. 

Second. — It  is  agreed  by  the  International  Association  of  Manufacturing 
Photo- Engravers  that  the  object  of  installing  and  operating  the  said  "Simple 
Cost  System"  is  for  the  sole  purpose  of  determining  the  true  cost  of  production 
and  its  relation  to  existing  prices  in  order  to  realize  a  fair  margin  of  profit  upon 
the  sale  of  photo-engravings  and  that  the  said  "Simple  Cost  System"  is  not  in- 
tended and  that  it  shall  not  be  used  in  its  entirety  or  any  part  thereof  by  any 
employer  for  the  purpose  of  checking  up  or  speeding  up  the  workmen,  or  used  in 
any  way  detrimental  to  the  workmen  or  their  working  conditions. 

Third.  It  is  agreed  by  both  parties  to  this  agreement  that  in  the  event  of  any 
difference  or  differences  arising  in  the  installation,  abuse  or  abuses  arising  or 
occurring  under  or  during  the  operation  of  the  said  "Simple  Cost  System,"  such 
difference  or  differences,  abuse  or  abuses  shall  be  immediately  adjusted  in  the 
following  manner: 

A.  Whenever  any  member  of  either  party  to  this  agreement  and  coming 
under  its  provisions,  shall  feel  themselves  aggrieved  in  the  operation  of  the  said 
"Simple  Cost  System,"  the  local  parties  in  interest  must  meet  in  conference  as 
soon  as  possible  and  not  later  than  ten   (10)   days  after  complaint  is  made,  at 
which  conference   (or  continuation  thereof)   every  effort  to  agree  and  adjust  the 
grievance  shall  be  made. 

B.  If  five  (5)  days  after  the  conference  meeting  provided  in  section  "A," 
no  agreement  or  adjustment  has  been  reached,  either  party  in  interest  may  refer 
the  grievance  or  complaint  to  the  President  of  the  International  Association  of 
Manufacturing  Photo-Engravers  and  the  President  of  the  International   Photo- 
Engravers'  Union  for  immediate  adjustment  by  submitting  a  complete  statement 
to  both  of  the  aforementioned  executive  officers;   such  statement   to  embrace  a 
complete  statement  of  the  grievance  or  complaint,  and  relate  what  effort  has  been 
made  locally  to  adjust  the  grievance  and  cause  of  failure  to  do  so.     A  copy  of 
this  statement  must  be  furnished  to  all  parties  in  dispute  by  the  party  referring  the 
complaint  or  grievance  to  the  said  executive  officers  for  adjustment,  and  the  party 
or  parties  against  whom  the  complaint  or  grievance  is  filed,  shall  immediately  file 
its  or  their  answer  to  all  parties  in  interest. 

C.  Immediately  upon  receipt  by  the  said  Executive  Officers  of  such  state- 
ment, they  shall  consider  and  adjust  the  complaint  or  grievance  as  soon  as  possible, 


of  the  Simple  Cost  System  1  9 

but  not  later  than  ten  (10)  days  after  the  original  complaint  has  been  filed  with 
them.  Upon  their  failure  to  agree  or  adjust  the  complaint  or  grievance,  the  entire 
matter  shall  be  immediately  referred  to  a  joint  conference  committee;  which  com- 
mittee shall  consist  of  three  members  selected  by  and  from  the  Executive  Officers 
or  Executive  Committee  of  the  International  Association  of  Manufacturing  Photo- 
Engravers,  and  three  members  selected  by  and  from  the  Executive  Council  of  the 
International  Photo-Engravers'  Union,  who  shall  meet  as  soon  as  possible  there- 
after, but  not  later  than  ten  (10)  days  after  failure  of  said  Executive  Officers  to 
agree,  and  proceed  in  adjusting  the  complaint  or  grievance. 

D.  The  time  of  submission  and  consideration  as  fixed  in  sections  A,  B  and  C 
shall  be  binding  in  all  cases  unless  the  time  has  been  expressly  extended  by  the 
President  of  the  International  Association  of  Manufacturing  Photo-Engravers  and 
the  President  of  the  International  Photo-Engravers'  Union.     Such  extension  of 
time  shall  apply  only  to  the  particular  case  for  which  it  is  extended. 

E.  All  decisions  shall  become  effective  at  once  unless  otherwise  provided  and 
shall  be  binding  upon  all,  subject  to  appeal  to  the  joint  conference  committee 
within  thirty  (30)  days  from  date  of  decision;  but  the  decisions  of  the  joint  con- 
ference committee  shall  be  final  and  binding  upon  all  parties  in  interest. 

F.  All  expenses  incurred  by  either  party  attendant  upon  the  adjustment  of 
any  case  shall  be  borne  by  each  respective  party. 

G.  The   rules    of   procedure   as   herein   or   hereinafter    agreed    to    may    be 
amended  at  any  meeting  of  the  joint  conference  committee. 

Fourth. — Both  parties  to  this  agreement  specifically  authorize  the  President  of 
the  International  Association  of  Manufacturing  Photo- Engravers  and  the  Pres- 
ident of  the  International  Photo-Engravers'  Union  to  give  public  disapproval 
and  disavowal  to  any  failure  upon  the  part  of  any  party  in  interest  to  comply  with 
the  terms  of  this  agreement,  and  as  herein  provided. 

IN  WITNESS  THEREOF,  the  undersigned,  as  duly  authorized  representa- 
tives of  the  two  parties  to  this  agreement,  have  hereunto  affixed  their  signatures 
in  approval  thereof  this  first  day  of  October,  1913. 

INTERNATIONAL  ASSOCIATION  OF  MANUFACTURING 

PHOTO^ENGRAVERS 

By 

E.  W.  HOUSER,  President. 
Louis  FLADER,  Commissioner. 

INTERNATIONAL  PHOTO-ENGRAVERS'  UNION  OF  N.  A. 

By 

MATTHEW  WOLL,  President. 
Louis  A.  ScHWARZ,  Sec')?- Treas. 


Gage  Printing  Co.,  Ltd.,  Battle  Creek,  Mich. 


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UNIVERSITY  OF  CALIFORNIA  LIBRARY 
BERKELEY 

Return  to  desk  from  which  borrowed. 
This  book  is  DUE  on  the  last  date  stamped  below. 


l?JunS4VtY 
61954  LU 


\ 


2  5  1969  8 
REC'DLDl  DEC    9 '69 -12PM 


LD  21-100m-9,'481B399sl6)476 


93795 


M513327 


